Consolidated Summary Report <under Japanese GAAP> for the fiscal year ended May 15, 2017 Company name: Mitsubishi UFJ Financial Group, Inc. Stock exchange listings: Tokyo, Nagoya, New York Code number: 8306 URL http://www.mufg.jp/ Representative: Nobuyuki Hirano, President & Group CEO For inquiry: Kazutaka Yoneda, General Manager - Financial Planning Division / Financial Accounting Office TEL (03) 3240-3110 General meeting of shareholders: June 29, 2017 Dividend payment date: June 30, 2017 Securities report issuing date: June 29, 2017 Trading accounts: Established Supplemental information for financial statements: Available Investor meeting presentation: Scheduled (for investors and analysts) (Amounts of less than one million yen are rounded down.) 1. Consolidated Financial Data for the Fiscal Year ended (1) Results of Operations ( % represents the change from the previous fiscal year) Ordinary Income Ordinary Profits Profits Attributable to Owners of Parent Fiscal year ended million yen % million yen % million yen % (*)Comprehensive income 5,979,568 5,714,419 4.6 1.3 1,360,767 1,539,486 (11.6) (10.1) 926,440 951,402 (2.6) (8.0) : 330,609 million yen (46.7) % ; : 620,662 million yen (82.0) % Fiscal year ended yen yen % % % 68.28 68.51 68.00 68.17 6.0 6.2 0.5 0.5 22.8 26.9 (Reference) Income from investment in affiliates (Equity method) : 244,453 million yen ; : 230,415 million yen (2) Financial Conditions million yen million yen % yen 303,297,433 298,302,898 16,658,394 17,386,769 5.0 5.2 1,137.78 1,121.07 (Reference) Shareholders equity as of : 15,280,268 million yen ; : 15,457,970 million yen (*) Equity-to-asset ratio is computed under the formula shown below (Total net assets - Subscription rights to shares - Non-controlling interests) / Total assets (3) Cash Flows Cash Flows from Cash Flows from Cash Flows from Cash and Cash Equivalents Operating Activities Investing Activities Financing Activities at the end of the period Fiscal year ended million yen million yen million yen million yen 7,013,064 6,754,428 8,907,549 2,240,209 (670,592) (105,602) 33,968,391 18,763,856 2. Dividends on Common Stock Basic earnings per share Total Assets Diluted earnings per share Total Net Assets Dividends per Share Net Income to Net Assets Attributable to MUFG shareholders Equity-to-asset ratio (*) Ordinary Profits to Total Assets Total Net Assets per Common Stock Dividend payout ratio Ordinary Profits to Ordinary Income Dividend on net assets ratio Total 1st 2nd 3rd Fiscal Total dividends quarter-end quarter-end quarter-end year-end (Consolidated) (Consolidated) Fiscal year yen yen yen yen yen million yen % % ended ended - - 9.00 9.00 - - 9.00 9.00 18.00 18.00 249,329 243,600 26.3 26.4 1.6 1.6 ending 2018 (Forecast) - 9.00-9.00 18.00 25.4 (*) Revision of forecasts for dividends on the presentation date of this Consolidated Summary Report : None 3. Earnings Target for the Fiscal Year ending 2018 (Consolidated) MUFG has set an earnings target of 950.0 billion yen of profits attributable to owners of parent for the fiscal year ending 2018. MUFG is engaged in financial service businesses such as banking business, trust banking business, securities business and credit card/loan businesses. Because there are various uncertainties caused by economic situation, market environments and other factors in these businesses, MUFG discloses a target of its profits attributable to owners of parent instead of a forecast of its performance.
Notes (1) Changes in significant subsidiaries during the period (Changes in specified subsidiaries accompanying change in scope of consolidation): Yes Excluded: 2 Companies (MUFG Capital Finance 1 Limited and BTMU Preferred Capital 1 Limited) (2) Changes in accounting policies, changes in accounting estimates and restatements Changes in accounting policies due to revision of accounting standards: No Changes in accounting policies due to reasons other than : No (C) Changes in accounting estimates: No (D) Restatements: No (3) Number of common stocks outstanding at the end of the period Total stocks outstanding including treasury stocks: 14,168,853,820 shares 14,168,853,820 shares Treasury stocks: 738,910,028 shares 380,255,157 shares (C) Average outstanding stocks: Fiscal year ended 13,568,693,838 shares Fiscal year ended 13,886,503,497 shares (Reference) Summary of non-consolidated financial data 1. Non-consolidated Financial Data for the Fiscal Year ended (1) Results of Operations ( % represents the change from the previous fiscal year) Operating Income Operating Profits Ordinary Profits Net Income Fiscal year ended million yen % million yen % million yen % million yen % 625,582 588,340 6.3 0.4 599,357 564,684 6.1 0.1 575,084 543,069 5.9 (1.6) 577,656 545,738 5.8 (1.4) Basic earnings Diluted earnings per share per share Fiscal year ended yen yen 42.57 39.29 42.53 39.24 (2) Financial Conditions Total Assets Total Net Assets Equity-to-asset ratio Total Net Assets per Common Stock million yen million yen % yen 13,969,770 12,043,230 8,592,679 8,482,329 61.5 70.4 639.70 614.47 (Reference) Shareholders equity as of : 8,592,288 million yen ; : 8,474,069 million yen *This Consolidated Summary Report ( Tanshin ) is outside the scope of the external auditor s audit procedure. *Notes for using forecasted information etc. 1. This financial summary report contains forward-looking statements regarding estimations, forecasts, targets and plans in relation to the results of operations, financial conditions and other overall management of the company and/or the group as a whole (the forward-looking statements ). The forward-looking statements are made based upon, among other things, the company s current estimations, perceptions and evaluations. In addition, in order for the company to adopt such estimations, forecasts, targets and plans regarding future events, certain assumptions have been made. Accordingly, due to various risks and uncertainties, the statements and assumptions are inherently not guarantees of future performance, may be considered differently from alternative perspectives and may result in material differences from the actual result. For the main factors that may affect the current forecasts, please see Consolidated Summary Report, Annual Securities Report, Disclosure Book, Annual Report, and other current disclosures that the company has announced. 2. The financial information included in this financial summary report is prepared and presented in accordance with accounting principles generally accepted in Japan ( Japanese GAAP ). Differences exist between Japanese GAAP and the accounting principles generally accepted in the United States ( U.S. GAAP ) in certain material respects. Such differences have resulted in the past, and are expected to continue to result for this period and future periods, in amounts for certain financial statement line items under U.S. GAAP to differ significantly from the amounts under Japanese GAAP. For example, differences in consolidation basis or accounting for business combinations, including but not limited to amortization and impairment of goodwill, could result in significant differences in our reported financial results between Japanese GAAP and U.S. GAAP. Readers should consult their own professional advisors for an understanding of the differences between Japanese GAAP and U.S. GAAP and how those differences might affect our reported financial results. We will publish U.S. GAAP financial results in a separate disclosure document when such information becomes available.
(Appendix) Contents of Appendix 1. Results of Operations and Financial Condition 2 (1) Analysis of results of operations 2 (2) Analysis of financial condition 3 2. Basic Views on Selection of Accounting Standards 4 3. Consolidated Financial Statements and Notes 5 (1) Consolidated Balance Sheets 5 (2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income 7 (3) Consolidated Statements of Changes in Net Assets 10 (4) Consolidated Statements of Cash Flows 12 Notes to the Consolidated Financial Statements 14 Notes on Going-Concern Assumption Segment Information Per Share Information Supplemental Information: Selected Financial Information under Japanese GAAP For the fiscal year ended (*) The following is the schedule of internet conference and explanation for investors and analysts. You can confirm those contents over the internet. Materials distributed for those will be uploaded in our homepage soon after the internet conference or the explanation is held. Internet Conference: May 15, 2017 (Monday) Explanation for investors and analysts: May 19, 2017 (Friday) 1
1. Results of Operations and Financial Condition (1) Analysis of results of operations (Results of operations for the fiscal year ended ) An overview of the financial and economic environment for fiscal year 2016 shows the global economy generally maintained a moderate recovery, particularly in developed countries. This was despite deep uncertainties arising from China s structural adjustment, as well as fluctuations in international financial markets due to key events such as the UK s vote to leave the EU and the advent of the new US administration. The US economy continued its self-sustained recovery, driven mainly by domestic demand, which was supported by improved employment conditions. However, the recovery in production and capital investment was a little slow in the corporate sector. In Europe, domestic demand continued to pick up, supported by improved employment conditions and low interest rates, despite an increase in uncertainty stemming from the UK s vote to leave the EU and NPL problems in Southern European countries. On the whole, the Asian economy was solid, particularly in ASEAN (Association of Southeast Asian Nations). However, each country s exports were pushed down by the economic slowdown in China, which has been undergoing structural adjustment. Under such circumstances, Japan s economy maintained a moderate recovery throughout the fiscal year, yet some areas experienced a delay in improvement. Private consumption continued to grow, albeit slowly, on the back of an increase in employment and wages; meanwhile, residential investment also remained strong. Capital expenditure continued to increase gradually, underpinned by an upturn in exports and production, although it was held back temporarily by a slowdown in corporate earnings growth caused by yen appreciation in the first half of the fiscal year. Public demand was almost flat. Turning now to financial conditions, there were large fluctuations in foreign exchange rates and stock prices in Japan. During the first half of fiscal year 2016, the Japanese yen continued to appreciate against the US dollar and Japan s stock market was weak against a backdrop of uncertainties surrounding the global economy. However, after the US presidential election, the Japanese yen depreciated sharply and stock prices surged due to high expectations brought about by the new administration. Towards the end of the fiscal year, the Japanese yen appreciated again. As for interest rates, the US Federal Reserve raised interest rates in December and March; whereas the Bank of England reduced interest rates in August after the national referendum and the European Central Bank retained its monetary easing policy. Additionally, the Bank of Japan maintained its aggressive monetary easing stance with the introduction of Quantitative and Qualitative Monetary Easing with Yield Curve Control in September, resulting in continued, low, long-term interest rates. Under such business environment, consolidated gross profits for the fiscal year ended decreased 131.3 billion yen from the previous fiscal year to 4,011.8 billion yen. This was mainly due to a decrease in the translated JPY value by the appreciation of JPY against other currencies, a decrease in net interest income from domestic loans and deposits, reflecting lower interest rates in domestic market, as well as decreases in fee income from sale of investment products and net gains on debt securities. Those were partially offset by increases in fee and net interest income in overseas. General and administrative (G&A) expenses for the fiscal year ended 2017 was 2,593.5 billion yen, almost unchanged from the previous fiscal year, partially due to the appreciation of 2
JPY against other currencies. As a result, net operating profits decreased 139.6 billion yen from the previous fiscal year to 1,418.2 billion yen. Total credit costs for the fiscal year ended decreased 99.7 billion yen from the previous fiscal year, mainly due to a decrease in provision for allowance for credit losses. Net gains on equity securities increased 36.6 billion yen from the previous fiscal year, driven by a progress in sales of equity holdings. Other non-recurring losses increased 189.4 billion yen from the previous fiscal year, mainly due to increases in provision for repayment of excess interest of credit card/loan businesses, and expenses for defined benefit plans. As a result, ordinary profits for the fiscal year ended were 1,360.7 billion yen, a decrease of 178.7 billion yen from the previous fiscal year, and profits attributable to owners of parent for the fiscal year ended was 926.4 billion yen, a decrease of 24.9 billion yen from the previous fiscal year. (in billions of Japanese yen) For the fiscal year ended For the fiscal year ended Gross profits before credit costs for trust accounts 4,011.8 4,143.2 (131.3) General and administrative expenses 2,593.5 2,585.2 8.2 Net operating profits before credit costs for trust accounts and provision for general allowance for credit losses 1,418.2 1,557.9 (139.6) Total credit costs (155.3) (255.1) 99.7 Net gains (losses) on equity securities 124.9 88.3 36.6 Profits (losses) from investments in affiliates 244.4 230.4 14.0 Other non-recurring gains (losses) (271.4) (82.0) (189.4) Ordinary profits 1,360.7 1,539.4 (178.7) Net extraordinary gains (losses) (57.5) (40.7) (16.8) Total taxes 342.1 460.2 (118.0) Profits attributable to non-controlling interests 34.6 87.1 (52.5) Profits attributable to owners of parent 926.4 951.4 (24.9) (2) Analysis of financial condition Total assets as of increased 4,994.5 billion yen from to 303,297.4 billion yen, and total net assets as of decreased 728.3 billion yen from to 16,658.3 billion yen. The decrease in total net assets was mainly due to decreases in net unrealized gains on available-for-sale securities and foreign currency translation adjustments, and share repurchases. With regard to major items of assets, loans and bills discounted as of decreased 4,751.0 billion yen from to 109,005.2 billion yen and securities as of decreased 10,554.9 billion yen from to 59,438.8 billion yen. With regard to major items of liabilities, deposits as of 2017 increased 9,765.1 billion yen from to 170,730.2 billion yen. 3
2. Basic Views on Selection of Accounting Standards MUFG group, currently adopting Japanese GAAP, is preparing for its future adoption of IFRS by considering the development of its infrastructures and organizations within the group, and the timing of adoption. 4
3. Consolidated Financial Statements and Notes (1) Consolidated Balance Sheets Assets: Cash and due from banks 49,158,293 63,525,940 Call loans and bills bought 660,015 649,147 Receivables under resale agreements 7,466,633 8,066,973 Receivables under securities borrowing transactions 6,041,983 11,002,723 Monetary claims bought 4,733,393 4,707,868 Trading assets 20,460,863 21,046,367 Money held in trust 679,678 806,881 Securities 69,993,869 59,438,897 Loans and bills discounted 113,756,325 109,005,231 Foreign exchanges 1,792,888 2,083,530 Other assets 12,255,764 11,554,699 Tangible fixed assets 1,362,044 1,358,905 Buildings 349,761 341,131 Land 730,130 720,132 Lease assets 10,856 10,164 Construction in progress 38,494 46,373 Other tangible fixed assets 232,801 241,104 Intangible fixed assets 1,254,727 1,257,876 Software 570,884 567,753 Goodwill 278,628 267,389 Lease assets 648 446 Other intangible fixed assets 404,566 422,287 Net defined benefit assets 377,955 601,377 Deferred tax assets 125,739 126,231 Customers liabilities for acceptances and guarantees 9,240,310 9,022,130 Allowance for credit losses (1,057,585) (957,350) Total assets 298,302,898 303,297,433 5
Liabilities: Deposits 160,965,056 170,730,221 Negotiable certificates of deposit 11,591,578 11,341,571 Call money and bills sold 1,360,238 1,973,569 Payables under repurchase agreements 23,515,240 17,636,962 Payables under securities lending transactions 4,710,407 5,538,739 Commercial papers 2,292,282 2,307,222 Trading liabilities 17,251,302 17,700,617 Borrowed money 12,482,277 16,971,085 Foreign exchanges 2,054,937 1,970,980 Short-term bonds payable 752,492 847,999 Bonds payable 9,190,542 9,893,687 Due to trust accounts 13,296,033 9,893,881 Other liabilities 10,834,564 9,382,992 Reserve for bonuses 90,219 81,012 Reserve for bonuses to directors 396 598 Reserve for stocks payment - 10,400 Net defined benefit liabilities 62,791 59,045 Reserve for retirement benefits to directors 1,113 1,128 Reserve for loyalty award credits 15,971 16,689 Reserve for contingent losses 210,087 384,868 Reserves under special laws 4,232 4,075 Deferred tax liabilities 866,815 745,073 Deferred tax liabilities for land revaluation 127,237 124,483 Acceptances and guarantees 9,240,310 9,022,130 Total liabilities 280,916,129 286,639,039 Net assets: Capital stock 2,141,513 2,141,513 Capital surplus 1,425,637 1,412,087 Retained earnings 8,587,578 9,278,546 Treasury stock (298,922) (513,260) Total shareholders equity 11,855,806 12,318,885 Net unrealized gains (losses) on available-for-sale securities 2,486,627 2,184,597 Net deferred gains (losses) on hedging instruments 337,297 125,684 Land revaluation excess 176,364 173,723 Foreign currency translation adjustments 791,401 558,339 Remeasurements of defined benefit plans (189,526) (65,098) Debt value adjustments of foreign subsidiaries and affiliates - (15,863) Total accumulated other comprehensive income 3,602,163 2,961,382 Subscription rights to shares 8,260 407 Non-controlling interests 1,920,538 1,377,719 Total net assets 17,386,769 16,658,394 Total liabilities and net assets 298,302,898 303,297,433 6
(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income Consolidated Statements of Income For the fiscal year For the fiscal year ended ended Ordinary income 5,714,419 5,979,568 Interest income 2,769,248 2,888,134 Interest on loans and bills discounted 1,812,133 1,862,089 Interest and dividends on securities 628,882 675,434 Interest on call loans and bills bought 9,887 10,523 Interest on receivables under resale agreements 41,818 46,831 Interest on receivables under securities borrowing transactions 6,520 6,246 Interest on deposits 79,087 79,746 Other interest income 190,919 207,261 Trust fees 117,046 122,050 Fees and commissions 1,536,719 1,531,974 Trading income 306,354 292,761 Other operating income 469,265 575,937 Other ordinary income 515,784 568,709 Gains on loans written-off 60,645 64,487 Others 455,138 504,221 Ordinary expenses 4,174,932 4,618,801 Interest expenses 655,735 863,677 Interest on deposits 292,909 296,574 Interest on negotiable certificates of deposit 48,093 65,008 Interest on call money and bills sold 8,204 2,043 Interest on payables under repurchase agreements 48,263 81,400 Interest on payables under securities lending transactions 7,449 2,104 Interest on commercial papers 6,347 15,172 Interest on borrowed money 46,856 34,140 Interest on short-term bonds payable 749 22 Interest on bonds payable 142,728 171,514 Other interest expenses 54,133 195,695 Fees and commissions 216,165 203,484 Trading expenses - 2,725 Other operating expenses 183,583 329,193 General and administrative expenses 2,602,450 2,663,503 Other ordinary expenses 516,997 556,217 Provision for allowance for credit losses 132,691 30,342 Others 384,305 525,875 Ordinary profits 1,539,486 1,360,767 7
For the fiscal year For the fiscal year ended ended Extraordinary gains 21,316 17,620 Gains on disposition of fixed assets 21,316 17,463 Reversal of reserve for contingent liabilities from financial instruments transactions - 156 Extraordinary losses 62,033 75,159 Losses on disposition of fixed assets 12,144 9,263 Losses on impairment of fixed assets 13,415 10,162 Provision for reserve for contingent liabilities from financial instruments transactions 460 - Losses on change in equity 36,013 45,654 Losses on liquidation of equity securities of subsidiaries - 5,313 Losses on exchange of shares of affiliates - 4,538 Losses on sales of equity securities of subsidiaries - 226 Profits before income taxes 1,498,769 1,303,228 Income taxes-current 424,814 319,060 Income taxes-deferred 35,389 23,116 Total taxes 460,204 342,177 Profits 1,038,565 961,050 Profits attributable to non-controlling interests 87,162 34,609 Profits attributable to owners of parent 951,402 926,440 8
Consolidated Statements of Comprehensive Income For the fiscal year For the fiscal year ended ended Profits 1,038,565 961,050 Other comprehensive income Net unrealized gains (losses) on available-for-sale securities (346,220) (278,689) Net deferred gains (losses) on hedging instruments 252,671 (212,449) Land revaluation excess 7,055 (21) Foreign currency translation adjustments (214,273) (145,331) Remeasurements of defined benefit plans (141,896) 134,560 Share of other comprehensive income of associates accounted for using equity method 24,759 (128,510) Total other comprehensive income (417,903) (630,441) Comprehensive income 620,662 330,609 (Comprehensive income attributable to) Comprehensive income attributable to owners of the parent 556,163 303,054 Comprehensive income attributable to non-controlling interests 64,498 27,554 9
(3) Consolidated Statements of Changes in Net Assets For the fiscal year ended Shareholders equity Accumulated other comprehensive income Capital stock Capital surplus Retained earnings Treasury stock Total shareholders equity Net unrealized gains (losses) on availablefor-sale securities Net deferred gains (losses) on hedging instruments Balance at the beginning of the period 2,141,513 1,428,403 7,860,410 (101,661) 11,328,666 2,835,091 83,194 Changes during the period Cash dividends (251,392) (251,392) Profits attributable to owners of parent Repurchase of treasury stock 951,402 951,402 (200,077) (200,077) Disposal of treasury stock (1,182) 2,815 1,633 Reversal of land revaluation excess 3,042 3,042 Changes of application of equity method 24,394 24,394 Changes in subsidiaries equity (1,584) (1,584) Changes in foreign affiliates' interests in their subsidiaries (278) (278) Net changes of items other than shareholders equity (348,464) 254,103 Total changes during the period - (2,766) 727,168 (197,261) 527,140 (348,464) 254,103 Balance at the end of the period 2,141,513 1,425,637 8,587,578 (298,922) 11,855,806 2,486,627 337,297 Accumulated other comprehensive income Land revaluation excess Foreign currency translation adjustments Total accumulated Remeasurements of other comprehensive defined benefit plans income Subscription rights to shares Non-controlling interests Total net assets Balance at the beginning of the period 172,350 951,547 (52,909) 3,989,274 8,271 1,961,322 17,287,533 Changes during the period Cash dividends (251,392) Profits attributable to owners of parent 951,402 Repurchase of treasury stock (200,077) Disposal of treasury stock 1,633 Reversal of land revaluation excess 3,042 Changes of application of equity method 24,394 Changes in subsidiaries equity (1,584) Changes in foreign affiliates' interests in their subsidiaries Net changes of items other than shareholders equity Total changes during the period (278) 4,013 (160,146) (136,616) (387,110) (10) (40,783) (427,904) 4,013 (160,146) (136,616) (387,110) (10) (40,783) 99,236 Balance at the end of the period 176,364 791,401 (189,526) 3,602,163 8,260 1,920,538 17,386,769 10
For the fiscal year ended Shareholders equity Capital stock Capital surplus Retained earnings Treasury stock Total shareholders equity Accumulated other comprehensive income Net unrealized gains (losses) on availablefor-sale securities Net deferred gains (losses) on hedging instruments Balance at the beginning of the period Cumulative effects due to revision of accounting standards for foreign subsidiaries and affiliates Restated balance Changes during the period 2,141,513 1,425,637 8,587,578 8,464 2,141,513 1,425,637 8,596,043 (298,922) 11,855,806 2,486,627 337,297 8,464 (298,922) 11,864,271 2,486,627 337,297 Cash dividends Profits attributable to owners of parent Repurchase of treasury stock Disposal of treasury stock Reversal of land revaluation excess (936) (246,557) (246,557) 926,440 926,440 (217,688) (217,688) 3,350 2,414 2,619 2,619 Changes in subsidiaries equity (12,614) (12,614) Net changes of items other than shareholders equity (302,029) (211,612) Total changes during the period - (13,550) 682,503 (214,337) 454,614 (302,029) (211,612) Balance at the end of the period 2,141,513 1,412,087 9,278,546 (513,260) 12,318,885 2,184,597 125,684 Accumulated other comprehensive income Land revaluation excess Foreign currency translation adjustments Remeasurements of defined benefit plans Debt value adjustments of foreign subsidiaries and affiliates Total accumulated other comprehensive income Subscription rights to shares Non-controlling interests Total net assets Balance at the beginning of the period 176,364 791,401 (189,526) - 3,602,163 8,260 1,920,538 17,386,769 Cumulative effects due to revision of accounting standards for (8,464) (8,464) - foreign subsidiaries and affiliates Restated balance 176,364 791,401 (189,526) (8,464) 3,593,699 8,260 1,920,538 17,386,769 Changes during the period Cash dividends (246,557) Profits attributable to owners of parent 926,440 Repurchase of treasury stock (217,688) Disposal of treasury stock 2,414 Reversal of land revaluation excess 2,619 Changes in subsidiaries equity (12,614) Net changes of items other than shareholders equity (2,641) (233,062) 124,427 (7,399) (632,317) (7,853) (542,819) (1,182,989) Total changes during the period (2,641) (233,062) 124,427 (7,399) (632,317) (7,853) (542,819) (728,375) Balance at the end of the period 173,723 558,339 (65,098) (15,863) 2,961,382 407 1,377,719 16,658,394 11
(4) Consolidated Statements of Cash Flows For the fiscal year For the fiscal year ended ended Cash flows from operating activities: Profits before income taxes 1,498,769 1,303,228 Depreciation and amortization 298,527 316,411 Impairment losses 13,415 10,162 Amortization of goodwill 16,931 16,737 Equity in losses (gains) of equity method investees (230,415) (244,453) (decrease) in allowance for credit losses 71,084 (92,783) (decrease) in reserve for bonuses 955 (285) (decrease) in reserve for bonuses to directors (58) 202 (decrease) in reserve for stocks payment - 10,400 Decrease (increase) in net defined benefit assets (88,908) (92,720) (decrease) in net defined benefit liabilities (2,255) 1,652 (decrease) in reserve for retirement benefits to directors 27 14 (decrease) in reserve for loyalty award credits 1,313 959 (decrease) in reserve for contingent losses 5,572 175,716 Interest income recognized on statement of income (2,769,248) (2,888,134) Interest expenses recognized on statement of income 655,735 863,677 Losses (gains) on securities (221,235) (181,811) Losses (gains) on money held in trust (10,689) 8,771 Foreign exchange losses (gains) 1,439,205 459,763 Losses (gains) on sales of fixed assets (9,171) (8,200) Net decrease (increase) in trading assets 49,544 (1,737,675) Net increase (decrease) in trading liabilities 1,980,093 1,448,201 Net decrease (increase) in unsettled trading accounts (821,034) (50,814) Net decrease (increase) in loans and bills discounted (4,990,628) 4,065,265 Net increase (decrease) in deposits 7,888,704 10,427,476 Net increase (decrease) in negotiable certificates of deposit (4,482,406) (242,013) Net increase (decrease) in borrowed money (excluding subordinated borrowings) (1,362,550) 4,551,643 Net decrease (increase) in due from banks (excluding cash equivalents) 80,699 802,579 Net decrease (increase) in call loans and bills bought and others (633,599) (1,413,158) Net decrease (increase) in receivables under securities borrowing transactions (1,438,094) (5,203,785) Net increase (decrease) in call money and bills sold and others (435,883) (3,999,428) Net increase (decrease) in commercial papers 119,203 33,847 Net increase (decrease) in payables under securities lending transactions (3,446,893) 850,842 Net decrease (increase) in foreign exchanges (assets) 380,193 (302,389) Net increase (decrease) in foreign exchanges (liabilities) 544,080 (81,641) Net increase (decrease) in short-term bonds payable (37,019) 95,507 Net increase (decrease) in issuance and redemption of unsubordinated bonds payable 649,951 422,720 Net increase (decrease) in due to trust accounts 10,112,737 (3,402,151) Interest income (cash basis) 2,897,378 3,023,722 Interest expenses (cash basis) (654,026) (847,418) Others 175,151 (684,097) Sub-total 7,245,155 7,416,541 Income taxes (537,036) (427,841) Refund of income taxes 46,308 24,364 Net cash provided by (used in) operating activities 6,754,428 7,013,064 12
For the fiscal year For the fiscal year ended ended Cash flows from investing activities: Purchases of securities (86,422,400) (56,618,395) Proceeds from sales of securities 60,274,528 39,602,665 Proceeds from redemption of securities 28,452,434 26,428,256 Payments for increase in money held in trust (641,740) (763,127) Proceeds from decrease in money held in trust 672,854 615,931 Purchases of tangible fixed assets (116,931) (121,733) Purchases of intangible fixed assets (231,615) (249,744) Proceeds from sales of tangible fixed assets 35,494 31,815 Proceeds from sales of intangible fixed assets 166 2,890 Payments for acquisition of subsidiaries equity affecting the scope of consolidation - (21,954) Proceeds from acquisition of subsidiaries equity affecting the scope of consolidation 218,639 - Proceeds from sales of subsidiaries equity affecting the scope of consolidation - 2,761 Others (1,221) (1,815) Net cash provided by (used in) investing activities 2,240,209 8,907,549 Cash flows from financing activities: Proceeds from subordinated borrowings 38,000 31,000 Repayments of subordinated borrowings redemption (92,500) (50,592) Proceeds from issuance of subordinated bonds payable and bonds with warrants 793,218 837,401 Payments for redemption of subordinated bonds payable and bonds with warrants (294,460) (476,943) Proceeds from issuance of common stock to non-controlling shareholders 1,081 1,195 Repayments to non-controlling shareholders - (854) Payments for redemption of preferred securities - (468,956) Dividends paid by MUFG (251,497) (246,563) Dividends paid by subsidiaries to non-controlling shareholders (94,825) (77,008) Purchases of treasury stock (200,053) (217,666) Proceeds from sales of treasury stock 1 3 Payments for purchases of subsidiaries equity not affecting the scope of consolidation (4,572) (1,612) Proceeds from sales of subsidiaries equity not affecting the scope of consolidation - 0 Others 3 4 Net cash provided by (used in) financing activities (105,602) (670,592) Effect of foreign exchange rate changes on cash and cash equivalents (115,214) (45,486) Net increase (decrease) in cash and cash equivalents 8,773,820 15,204,534 Cash and cash equivalents at the beginning of the period 9,990,035 18,763,856 Cash and cash equivalents at the end of the period 18,763,856 33,968,391 13
Notes to the Consolidated Financial Statements (Notes on Going-Concern Assumption) None. (Segment Information) 1. Information on net revenue and operating profit (loss) for each reporting segment For the Fiscal Year Ended Retail Corporate Banking Banking Business Business Group Group Global Business Group Trust Assets Business Group Total of Customer Business Global Markets Business Group Net revenue 1,198,285 1,041,648 1,303,663 173,116 3,538,965 582,011 (9,082) 4,111,895 Operating expenses 972,999 598,434 821,205 112,204 2,348,126 212,899 155,116 2,716,142 Operating profit 225,286 443,213 482,458 60,911 1,190,839 369,112 (164,198) 1,395,753 (Notes) 1. Net revenue in the above table is used in lieu of net sales generally used by Japanese non-financial companies. 2. Net revenue includes net interest income, trust fees, net fees and commissions, net trading profit, and net other operating profit. 3. Operating expenses includes personnel expenses and premise expenses. 4. Assets and liabilities of each reporting segment are not reported since MUFG does not allocate assets and liabilities among the segments for internal management purposes. 5. Net revenue and Operating expenses for each of the Corporate Banking Business Group and the Global Business Group include net revenue and operating expenses relating to overseas Japanese corporate transactions. The amounts relating to such transactions included in each of these reporting segments are as follows: 177,748 million of net revenue, 156,717 million of operating expenses and 21,030 million of operating profit. Adjustments have been made by deducting these amounts from the Total of Customer Business. Other Total 2. Reconciliation of the total operating profit in each of the above tables to the ordinary profit in the consolidated statements of income for the corresponding twelve-month period operating profit For the twelve months ended 2017 Total operating profit of reporting segments 1,395,753 Operating profit of consolidated subsidiaries excluded from reporting segments 43,789 Provision for general allowance for credit losses (210,257) Credit related expenses (9,606) Gains on collection of bad debts 64,487 Net gains on equity securities and other securities 124,940 Equity in earnings of equity method investees 244,453 Others (292,791) Ordinary profit in the consolidated statements of income 1,360,767 (Notes) Others includes Provision for loss on interest repayment: ( 154,849) million 14
(Per Share Information) For the fiscal year ended Total equity per common share 1,137.77 Basic earnings per common share 68.27 Diluted earnings per common share 67.99 (Notes) 1. The bases for the calculation of basic earnings per common share and diluted earnings per common share for the periods indicated were as follows: For the fiscal year ended Basic earnings per common share Profits attributable to owners of parent million yen 926,440 Profits not attributable to common shareholders million yen - Profits attributable to owners of the parent related common shares million yen 926,440 Average number of common shares during the period thousand shares 13,568,693 Diluted earnings per common share Adjustment to profits attributable to owners of the parent million yen (3,095) Adjustment related to dilutive shares of consolidated subsidiaries and others in common share Subscription rights to shares Description of antidilutive securities which were not included in the calculation of diluted earnings per share million yen (3,095) thousand shares thousand shares Share subscription rights issued by equity method affiliates: Morgan Stanley Stock options - 8 million units as of December, 2016 9,993 9,993 2. The bases for the calculation of total equity per common share for the periods indicated were as follows: For the fiscal year ended Total equity million yen 16,658,394 Deductions from total equity: million yen 1,378,126 Subscription rights to shares million yen 407 Non-controlling interests million yen 1,377,719 Total equity attributable to common shares million yen 15,280,268 Number of common shares at period end used for the calculation of total equity per common share thousand shares 13,429,943 15
Selected Financial Information under Japanese GAAP For the fiscal year Ended Mitsubishi UFJ Financial Group, Inc.
[Contents] 1. Financial Results [ MUFG Consolidated ]*1[ BTMU and MUTB Combined ]*2*3*4 ----- 1 [ BTMU Consolidated ][ BTMU Non-consolidated ] [ MUTB Consolidated ][ MUTB Non-consolidated ] 2. Average Interest Rate Spread [ BTMU Non-consolidated ][ MUTB Non-consolidated ] ----- 7 [ BTMU and MUTB Combined ] 3. Notional Principal by the Remaining Life of the Interest Rate Swaps for Hedge-Accounting ----- 8 [ MUFG Consolidated ][ BTMU Consolidated ][ MUTB Consolidated ] 4. Securities [ MUFG Consolidated ] ----- 9 [ BTMU Non-consolidated ][ MUTB Non-consolidated ] 5. ROE [ MUFG Consolidated ] ----- 12 6. Risk-Adjusted Capital Ratio ----- 13 [ MUFG Consolidated ][ BTMU Consolidated ][ MUTB Consolidated ] [ BTMU Non-consolidated ][ MUTB Non-consolidated ] 7. Risk-Monitored Loans [ MUFG Consolidated ] ----- 14 [ BTMU Non-consolidated ][ MUTB Non-consolidated ] [ MUTB Non-consolidated : Trust Account ] 8. Non Performing Loans Based on the Financial Reconstruction Law (the FRL ) ----- 18 [ BTMU and MUTB Combined including Trust Account ] [ BTMU Non-consolidated ][ MUTB Non-consolidated ] [ MUTB Non-consolidated : Trust Account ] 9. Progress in Disposition of Problem Assets [ BTMU Non-consolidated ] ----- 23 [ MUTB Non-consolidated including Trust Account ] 10. Loans Classified by Type of Industry, Domestic Consumer Loans, Domestic Loans to ----- 25 Small/Medium-Sized Companies and Proprietors [ BTMU and MUTB Combined including Trust Accounts ] [ BTMU Non-consolidated ][ MUTB Non-consolidated ] [ MUTB Non-consolidated : Trust Accounts ] 11. Overseas Loans [ BTMU and MUTB Combined ] ----- 29 12. Loans and Deposits [ BTMU and MUTB Combined ] ----- 30 [ BTMU Non-consolidated ][ MUTB Non-consolidated ] 13. Domestic Deposits [ BTMU and MUTB Combined ] ----- 31 [ BTMU Non-consolidated ][ MUTB Non-consolidated ] 14. Status of Deferred Tax Assets [ BTMU Non-consolidated ][ MUTB Non-consolidated ] ----- 32 15. Retirement Benefits [ MUFG Consolidated ] ----- 34 [ BTMU Non-consolidated ][ MUTB Non-consolidated ] (References) 1. Financial Statements [ BTMU Non-consolidated ][ MUTB Non-consolidated ] ----- 37 (*1) MUFG means Mitsubishi UFJ Financial Group, Inc. (*2) BTMU means The Bank of Tokyo-Mitsubishi UFJ, Ltd. (*3) MUTB means Mitsubishi UFJ Trust and Banking Corporation. (*4) BTMU and MUTB Combined means simple sum of BTMU and MUTB without consolidation processes.
1. Financial Results MUFG Consolidated For the fiscal year ended Gross profits 4,011,809 4,143,202 (131,393) Gross profits before credit costs for trust accounts 4,011,808 4,143,202 (131,393) Net interest income 2,024,487 2,113,564 (89,077) Trust fees 122,050 117,046 5,004 Credit costs for trust accounts (1) 0 0 (0) Net fees and commissions 1,328,490 1,320,554 7,936 Net trading profits 290,035 306,354 (16,318) Net other operating profits 246,744 285,682 (38,937) Net gains (losses) on debt securities 56,871 132,928 (76,057) General and administrative expenses 2,593,576 2,585,279 8,296 Amortization of goodwill 16,737 16,931 (193) Net operating profits before credit costs for trust accounts, provision for general allowance for credit losses and amortization of goodwill 1,434,969 1,574,853 (139,884) Net operating profits before credit costs for trust accounts and provision for general allowance for credit losses 1,418,231 1,557,922 (139,690) Provision for general allowance for credit losses (2) (210,257) 175,712 (385,970) Net operating profits* 1,207,974 1,733,635 (525,660) Net non-recurring gains (losses) 152,793 (194,148) 346,941 Credit costs (3) (9,606) (491,503) 481,897 Losses on loan write-offs (136,423) (143,946) 7,522 Provision for specific allowance for credit losses 181,550 (305,131) 486,682 Other credit costs (54,733) (42,425) (12,307) Reversal of allowance for credit losses (4) - - - Reversal of reserve for contingent losses included in credit costs (5) - - - Gains on loans written-off (6) 64,487 60,645 3,842 Net gains (losses) on equity securities 124,940 88,306 36,633 Gains on sales of equity securities 171,875 145,347 26,527 Losses on sales of equity securities (44,378) (31,656) (12,721) Losses on write-down of equity securities (2,557) (25,384) 22,827 Profits (losses) from investments in affiliates 244,453 230,415 14,037 Other non-recurring gains (losses) (271,481) (82,012) (189,469) Ordinary profits 1,360,767 1,539,486 (178,719) Net extraordinary gains (losses) (57,539) (40,717) (16,821) Net losses on change in equity (45,654) (36,013) (9,641) Profits before income taxes 1,303,228 1,498,769 (195,541) Income taxes-current 319,060 424,814 (105,753) Income taxes-deferred 23,116 35,389 (12,272) Total taxes 342,177 460,204 (118,026) Profits 961,050 1,038,565 (77,514) Profits attributable to non-controlling interests 34,609 87,162 (52,552) Profits attributable to owners of parent 926,440 951,402 (24,961) Note: * Net operating profits = Banking subsidiaries net operating profits + Other consolidated entities gross profits - Other consolidated entities general and administrative expenses - Other consolidated entities provision for general allowance for credit losses - Amortization of goodwill - Inter-company transactions (Reference) Total credit costs (1)+(2)+(3)+(4)+(5)+(6) (155,376) (255,145) 99,769 Number of consolidated subsidiaries 213 224 (11) Number of affiliated companies accounted for under the equity method 58 65 (7) 1
BTMU and MUTB Combined For the fiscal year ended Gross profits 2,190,471 2,395,985 (205,514) Gross profits before credit costs for trust accounts 2,190,471 2,395,985 (205,514) Domestic gross profits 1,280,884 1,403,459 (122,575) Net interest income 684,142 785,955 (101,812) Trust fees 94,645 90,917 3,727 Credit costs for trust accounts (1) - - - Net fees and commissions 387,166 388,072 (905) Net trading profits 13,015 34,720 (21,705) Net other operating profits 101,914 103,793 (1,879) Net gains (losses) on debt securities 78,072 93,105 (15,032) Non-domestic gross profits 909,587 992,525 (82,938) Net interest income 537,616 540,512 (2,895) Net fees and commissions 206,762 214,689 (7,926) Net trading profits 96,227 123,133 (26,905) Net other operating profits 68,981 114,191 (45,210) Net gains (losses) on debt securities (33,191) 29,423 (62,615) General and administrative expenses 1,342,025 1,314,796 27,229 Personnel expenses 480,593 485,797 (5,203) Non-personnel expenses 785,425 756,043 29,381 Taxes 76,006 72,955 3,051 Net operating profits before credit costs for trust accounts and provision for general allowance for credit losses 848,445 1,081,189 (232,743) Provision for general allowance for credit losses (2) (32,040) 208,285 (240,325) Net operating profits 816,405 1,289,474 (473,069) Net non-recurring gains (losses) (19,711) (219,230) 199,519 Credit costs (3) (83,298) (332,201) 248,903 Losses on loan write-offs (36,428) (43,430) 7,002 Provision for specific allowance for credit losses 8,430 (248,863) 257,293 Other credit costs (55,300) (39,907) (15,393) Reversal of allowance for credit losses (4) 45,784-45,784 Reversal of reserve for contingent losses included in credit costs (5) 607 36 570 Gains on loans written-off (6) 20,982 20,122 860 Net gains (losses) on equity securities 112,151 76,933 35,218 Gains on sales of equity securities 160,452 134,500 25,951 Losses on sales of equity securities (46,665) (32,994) (13,671) Losses on write-down of equity securities (1,635) (24,573) 22,937 Other non-recurring gains (losses) (115,938) 15,879 (131,817) Ordinary profits 796,694 1,070,243 (273,549) Net extraordinary gains (losses) (8,104) 33,071 (41,175) Net gains (losses) on disposition of fixed assets 2,261 9,387 (7,125) Losses on impairment of fixed assets (4,237) (11,100) 6,862 Losses on liquidation of equity securities of subsidiaries (7,941) - (7,941) Dividends from foreign subsidiary due to the organizational restructuring - 14,467 (14,467) Gains on sales of equity securities of subsidiaries 2,600 18,319 (15,718) Income before income taxes 788,589 1,103,314 (314,725) Income taxes-current 214,422 314,662 (100,239) Income taxes-deferred (27,543) 42,603 (70,147) Total taxes 186,878 357,266 (170,387) Net income 601,710 746,048 (144,337) (Reference) Total credit costs (1)+(2)+(3)+(4)+(5)+(6) (47,964) (103,757) 55,792 2
BTMU Consolidated For the fiscal year ended Gross profits 2,771,308 2,932,824 (161,516) Net interest income 1,712,876 1,788,159 (75,283) Trust fees 13,865 13,150 714 Net fees and commissions 729,808 717,796 12,012 Net trading profits 106,750 135,629 (28,879) Net other operating profits 208,006 278,088 (70,081) Net gains (losses) on debt securities 44,866 116,010 (71,144) General and administrative expenses 1,743,554 1,743,302 252 Amortization of goodwill 15,498 15,943 (445) Net operating profits before provision for general allowance for credit losses and amortization of goodwill 1,043,252 1,205,466 (162,213) Net operating profits before provision for general allowance for credit losses 1,027,753 1,189,522 (161,768) Provision for general allowance for credit losses (1) - 169,662 (169,662) Net operating profits* 1,027,753 1,359,184 (331,431) Net non-recurring gains (losses) (35,698) (275,483) 239,785 Credit costs (2) (126,921) (413,323) 286,401 Losses on loan write-offs (71,520) (82,670) 11,149 Provision for specific allowance for credit losses - (288,056) 288,056 Other credit costs (55,400) (42,597) (12,803) Reversal of allowance for credit losses (3) 11,034-11,034 Reversal of reserve for contingent losses included in credit costs (4) - - - Gains on loans written-off (5) 44,186 39,170 5,016 Net gains (losses) on equity securities 96,094 73,973 22,121 Gains on sales of equity securities 142,947 126,056 16,890 Losses on sales of equity securities (44,792) (28,831) (15,961) Losses on write-down of equity securities (2,060) (23,252) 21,191 Profits (losses) from investments in affiliates 21,891 25,000 (3,108) Other non-recurring gains (losses) (81,982) (303) (81,678) Ordinary profits 992,055 1,083,701 (91,645) Net extraordinary gains (losses) (2,515) 15,702 (18,218) Net gains (losses) on disposition of fixed assets 10,734 11,006 (272) Losses on impairment of fixed assets (5,778) (11,011) 5,232 Gains (losses) on sales of equity securities of subsidiaries (226) 15,595 (15,821) Losses on liquidation of equity securities of subsidiaries (3,236) - (3,236) Losses on exchange of shares of affiliates (4,007) - (4,007) Profits before income taxes 989,540 1,099,404 (109,863) Income taxes-current 234,738 322,969 (88,231) Income taxes-deferred 10,391 27,237 (16,845) Total taxes 245,130 350,207 (105,076) Profits 744,409 749,196 (4,786) Profits attributable to non-controlling interests 54,480 63,360 (8,880) Profits attributable to owners of parent 689,929 685,835 4,093 Note: * Net operating profits = Net operating profits of BTMU + Other consolidated entities gross profits - Other consolidated entities general and administrative expenses - Other consolidated entities provision for general allowance for credit losses - Amortization of goodwill - Inter-company transactions (Reference) Total credit costs (1)+(2)+(3)+(4)+(5) (71,700) (204,490) 132,790 Number of consolidated subsidiaries 127 128 (1) Number of affiliated companies accounted for under the equity method 50 58 (8) 3
BTMU Non-consolidated For the fiscal year ended Gross profits 1,808,757 2,017,254 (208,497) Domestic gross profits 1,010,035 1,091,206 (81,170) Net interest income 601,653 701,264 (99,610) Net fees and commissions 285,755 288,222 (2,467) Net trading profits 19,401 (1,672) 21,074 Net other operating profits 103,224 103,392 (167) Net gains (losses) on debt securities 85,973 84,927 1,046 Non-domestic gross profits 798,721 926,048 (127,326) Net interest income 461,816 461,266 550 Net fees and commissions 202,267 209,732 (7,465) Net trading profits 88,872 138,509 (49,636) Net other operating profits 45,764 116,540 (70,775) Net gains (losses) on debt securities (52,118) 22,565 (74,684) General and administrative expenses 1,141,768 1,129,145 12,623 Personnel expenses 404,345 415,730 (11,385) Non-personnel expenses 672,758 648,506 24,251 Amortization of goodwill 359 293 66 Taxes 64,664 64,907 (243) Net operating profits before provision for general allowance for credit losses and amortization of goodwill 667,348 888,403 (221,054) Net operating profits before provision for general allowance for credit losses 666,989 888,109 (221,120) Provision for general allowance for credit losses (1) - 202,639 (202,639) Net operating profits 666,989 1,090,749 (423,760) Net non-recurring gains (losses) (34,783) (227,013) 192,229 Credit costs (2) (91,522) (325,772) 234,250 Reversal of allowance for credit losses (3) 45,784-45,784 Reversal of reserve for contingent losses included in credit costs (4) - - - Gains on loans written-off (5) 20,275 19,661 613 Net gains (losses) on equity securities 94,823 67,816 27,007 Gains on sales of equity securities 140,261 117,940 22,320 Losses on sales of equity securities (44,045) (27,538) (16,506) Losses on write-down of equity securities (1,391) (22,585) 21,193 Other non-recurring gains (losses) (104,144) 11,281 (115,426) Ordinary profits 632,205 863,736 (231,530) Net extraordinary gains (losses) 78 20,966 (20,887) Net gains (losses) on disposition of fixed assets 3,509 10,188 (6,679) Losses on impairment of fixed assets (394) (9,539) 9,145 Losses on liquidation of equity securities of subsidiaries (4,850) - (4,850) Gains on sales of equity securities of subsidiaries 2,600 18,319 (15,718) Income before income taxes 632,284 884,702 (252,418) Income taxes-current 164,367 262,781 (98,414) Income taxes-deferred (13,539) 35,854 (49,393) Total taxes 150,828 298,635 (147,807) Net income 481,455 586,066 (104,610) (Reference) Total credit costs (1)+(2)+(3)+(4)+(5) (25,462) (103,471) 78,008 Provision for general allowance for credit losses (157,631) 202,639 (360,270) Provision for special allowance for credit losses 203,483 (242,455) 445,938 Allowance for credit to specific foreign borrowers (67) 896 (964) Losses on loans write-off (36,075) (43,410) 7,334 Provision for contingent losses included in credit costs (49,022) (3,205) (45,816) Gains on loans written-off 20,275 19,661 613 Losses on sales of other loans, etc. (6,424) (37,597) 31,173 4